ALERT: Two Major Warnings Could Spell Disaster For Markets
KingWorldNews.com
March 16, 2018
With the bulls attempting to rally, two major warnings could spell disaster for stock markets but be extremely bullish for gold and silver…
Two Major Warnings For Markets
By Peter Boockvar, author of the Boock Report
March 16 (King World News) – Here is what Peter Boockvar wrote as the world awaits the next round of monetary madness: It was back in 2011 and 2012 when foreigners had a voracious appetite for US Treasuries. They loved us as they bought a net $400b+ in each of those years. They loved us a lot less the next year and by 2015 they turned into sellers by $20.3b. In 2016 they sold $326b and we saw a modest rebound in 2017 as there was net foreign buying of $14b…
In January 2018, foreigners bought $8.4b of notes and bonds. This came as the 10 yr yield rose from 2.4% to 2.7% that month. What they mostly had an appetite for in January was US stocks as they ripped higher. They bought the most amount of stock since May 2007 and the 2nd most on record.
Back to Treasuries, China bought $4.2b of notes and bonds but their total holdings fell by $16.7b because T-bills likely matured. They own the least amount of US Treasury debt since June 2017. Japan, the 2nd biggest foreign holder of US Treasuries, sold $2.1b of notes and bonds but offset that with the purchases of bills.
Bottom line, with the Federal Reserve essentially selling Treasuries, a massive pick up in supply and foreigners dramatically cutting back on their purchases, we need all the help we can get from others.
The Rest…HERE
